Involuntary Chapter 11 Petition Filed Against the Owner of Inspirada Housing Development in Las Vegas/Henderson, Nevada

On December 9, 2010, a group of creditors filed an involuntary chapter 11 bankruptcy petition against South Edge, LLC in the United States Bankruptcy Court for the District of Nevada. South Edge, LLC is the owner of Inspirada - a master planned housing development encompassing approximately 2,000 acres in Henderson, Nevada (a suburb of Las Vegas). According to Inspirada's website, it is being jointly developed by KB Home, Toll Brothers, Focus Property Group, Woodside Homes, Kimball Hill Homes, Pardee Homes, Meritage Homes, and Beazer Homes. Once completed, the development will consist of 13,500 residences with approximately 30,000 inhabitants. Groundbreaking on the development occurred in October 2005.

The petitioning creditors are:

JPMorgan Chase Bank, N.A. with an asserted claim of $13.4 million

Credit Agricole Corporate and Investment Bank with an asserted claim of $20.3 million

Wells Fargo Bank, N.A. with an asserted claim of $20.5 million

The petitioning creditors have asked the court to appoint a trustee for the property and assert that the project is being mismanaged by South Edge and its owners.

Key court filings to date include (click on the title of any document for more information or to purchase):